Sanitation Commissioner John Doherty confirmed yesterday that the currently suspended plastics-recycling program will resume July 1, but at less cost to taxpayers.

“We’re not at a point where recycling is a freebie yet. But this is probably the best point we’ve been at since the local law’s been enacted . . . as far as the economics of it go,” Doherty told the City Council Committee on Sanitation & Solid Waste.

To save $40 million last year, Mayor Bloomberg and the City Council agreed to suspend plastic and glass recycling, while continuing metal and paper.

Few people realized that the suspension for plastics was scheduled to end June 30.

Officials said plastics recycling would now be less costly because of a bid they received from Hugo Neu Schnitzer East, a small scrap-metal recycling company based in New Jersey.

Previously, the city had to pay private firms to have plastics taken away but the company has proposed paying the city $5.10 for every ton of combined metal and plastics.

Other bids received by the city called for the city pay up to $67 per each ton carted away.

“I think its very encouraging to see a positive bid come in,” Doherty said.

Mike McMahon (D-S.I.), chair of the committee, said the administration could have reached this kind of agreement sooner if it had looked for recycling companies to do the job.

“You could have continued the program [and saved money] if they had begun at an earlier date to treat recycling differently and not look at it as a thorn in their side. This is not anything new. This is what other municipalities are doing,” McMahon said.

Barring any last-minute glitches, the department is likely to proceed with that contract in the next few months.

Glass recycling however is not slated to return until mid 2004.

Meanwhile, Doherty said his department’s $19.7 million budget for snow removal was down to $3.2 million and that he expected to make the $25 million in budget cuts that Bloomberg has asked for without resorting to layoffs.